Bitfinex analysts have identified on-chain dynamics that suggest the crypto market’s correction phase is over, and investors have entered a re-accumulation phase, which precedes rallies., crypto investors are buying bitcoin and ether at an increasingly consistent pace. The market shift from consolidation to re-accumulation is evident in the behavior of BTC exchange-traded funds and the average transaction size on Bitcoin and Ethereum.
During the consolidation period, which lasted several weeks from April, Bitcoin ETFs witnessed large outflows averaging $148 million per day. Analysts said the outflows marked a form of micro-capitulation period; however, they soon reversed., buying has increased. U.S. spot Bitcoin ETFs have witnessed a resurgent buy-side demand, with daily net inflows averaging $136 million in the last two weeks.
“Examining the accumulation addresses on both the Bitcoin and Ethereum networks, we see that, despite recent stable prices and modest growth for both assets, compared to previous months, there has been a noticeable increase in new accumulation addresses over the past month,” Bitfinex said. The exchange’s analysts explained that the trend indicates that investor sentiment remains bullish despite stability in the prices of crypto assets. In addition, the estimated leverage ratio’s stability on these networks highlights a balanced market with minimal extreme risks.in the Bitcoin exchange reserve, which tracks the amount of BTC held in exchange wallets.
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